$88 o $176 ?Mark for follow up Question 47 of 75 Every year, a college basketbal

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$88 o $176 ?Mark for follow up Question 47 of 75 Every year, a college basketball tourn ament is held in Bridget's city. She rents out her condominium during the week-long tournament while she goes out of town on vacation. She receives $1,350 rental income for the week. As her Tax come? Professional, how do you report this in O The income and expenses are reported on Schedule E. O The income is reported on Schedule E, but no expenses are allowed, because Bridget is not in the rental business. The income is reported on the Other Income section of Form 1040, and rental expenses, up to the amount of income, are deducted on Schedule A. O The income is not reported because the property was rented for fewer than 15 days. Mark for follow up Question 48 of 75. David has income from several sources. Which one is considered passive income? O Dividends paid on shares of a mutual fund in his 401(k) account. O Dividends paid on shares of a mutual fund in his Roth IRA. Unemployment benefits received during a one-month layoff

Explanation / Answer

Ans: Option A

Reason: Income fromn rental properties such as apartment, building etc and all the expenses related to it will be reported in form 1040 , Schedule E.

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